Coupons and the Path to Purchase

Coupons help drive shoppers along the path to purchase.

There is an increasing buzz in the industry about digital promotions. It’s growing quickly and many brand owners are excited at the prospect of connecting directly with shoppers as a way to motivate purchase. While digital is getting increased exposure for its proposed promise, the reality of its overall effectiveness is altogether different.

The October 2014 issue of "Shopper Marketing" magazine explores why mobile phones are not a larger part of the shopping experience. A survey done in June of this year among shoppers shows only 7% find mobile apps useful; 6% find text notifications from a brand or retailer useful; and only 5% find games, quizzes and polls with the shopping site useful. Almost two-thirds of shoppers opted-out of sharing their location, and more than a third complained it decreases battery life. Another survey found half of shoppers surveyed were concerned with privacy and location tracking.

Many shoppers have an "ingrained routine" that does not include using apps for shopping. Basically, shoppers make their way through the grocery isles the same way every time they shop. It’s safe to say, shoppers are creatures of habit, which could be why others find the use of mobile intrusive and too cumbersome for the savings involved.

One of the key reasons so many mobile shopping apps keep coming out is that brand owners are sold on the idea of capturing "big data" on their shoppers. According to Terry Logan of the Integer Group, "Many of these new technologies are indeed great for the retailers and brands, but they aren’t always great for the consumer."

Long story short is the fact on-pack and in-pack promotions are a proven and cost-effective way for brands to fit right in with the "ingrained routine" of many shoppers. While these tactics may not be high-tech, they are highly effective and deliver great marketing value.